In the UK we are celebrating the 10th anniversary of the UK’s ground-breaking Community Interest Company (CIC) legal structure. A company form that builds in a social mission, the CIC structure was created specifically for social enterprises. The British Council were pleased to join the celebrations and interview Sara Burgess, Regulator of the CIC.
What is the aim of the CIC structure?
CICs are a dedicated legal structure for entrepreneurs who want to run their business for social purpose. Like any other company registered at Companies House, CICs enjoy limited liability and are able to trade widely. But in addition, the CIC structure gives stakeholders confidence in its social or environmental purpose because it has a statutory asset lock. CICs must also file a statutory annual report to the Regulator providing evidence about how they are achieving community benefit.
What have been its most notable achievements in the UK?
Over 11,000 CICs are now registered and the number is increasing every day. They are present across a wide range of activities from media, retail, manufacture, business advice, tourism, regeneration, education and even community solar energy projects. The number of CICs delivering health and social care has been a particular area of growth, including staff “spinning-out” from services previously ran by the public sector in the UK.
What have been the biggest issues you have faced as the CIC Regulator?
It has been my job to ensure the CIC structure is fit for purpose and that as wide an audience as possible is made aware of the CIC model. The legislation has been changed twice, including around the potential to bring investors on board. And my team have made it our mission to be available and very public facing.
As CICs grow in numbers and size, complaints to the regulator about CICs have also grown. We are pleased that the presence of a regulator makes it possible for anyone to express their concerns about a business and get a response.
Has the CIC structure attracted any international attention?
There has been a lot of global interest in the model and while it has not been entirely replicated, others have learned from our experience. There are 3 provinces in Canada with similar models. Japan, North Korea, China, South Africa, Australia, the US and France have consulted us on our experience and learning. We have equally learned back from them.
How would you like to see it evolve by 2025?
I see a movement taking shape that can and will have terrific impact on society and business. The CIC structure provides one powerful way for entrepreneurs to commit to real community involvement and engagement. And there is a strong sense of collaboration. CICs love talking to one another and sharing their experience. CIC numbers continue to grow and the CIC structure is increasingly the model of choice for many social entrepreneurs. I would love all companies to be CICs!
Find out more about the CIC in the Regulator’s latest annual report or from this article by our partner, Social Enterprise UK.
Sara Burgess is the Regulator of UK’s Community Interest Company. Sara became the Regulator of Community Interest Companies in September 2007. As a light touch regulator, Sara’s key role is to raise awareness of community interest companies and maintain public confidence in the CIC legal form. Sara has 23 years experience of working in the third sector, with a variety of small local and large national charities. She also has experience of running her own management consultancy business.
Content on this page is paid for and provided by the British Council, sponsor of the international social enterprise hub
